October 2018

BPO

Sectorwatch

The BPO market is expected to witness steady growth as a result of the cost benefits achieved by outsourcing and the development and availability of new generation technologies. Increased competitiveness of global markets and the pressure on businesses to run efficiently provides opportunities for growth in BPO services. Companies will continue to pursue outsourcing to reduce expenditures and offset growing back office costs.

Industry Trend:

Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing

Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power

Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants